Lumen Technologies awarded $254.6M for SSA Data Network Services under EIS program, a 7-year contract

Contract Overview

Contract Amount: $254,661,589 ($254.7M)

Contractor: Lumen Technologies Government Solutions, Inc.

Awarding Agency: Social Security Administration

Start Date: 2019-09-30

End Date: 2026-09-29

Contract Duration: 2,556 days

Daily Burn Rate: $99.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) PROGRAM - SSA DATA NETWORK SERVICES (SSANET)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22240

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $254.7 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC. for work described as: ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) PROGRAM - SSA DATA NETWORK SERVICES (SSANET) Key points: 1. Contract value represents a significant investment in essential data network services for the Social Security Administration. 2. The award was made under the Enterprise Infrastructure Solutions (EIS) program, indicating a strategic approach to federal IT procurement. 3. A firm-fixed-price contract type suggests predictable costs for the government, mitigating budget uncertainty. 4. The contract duration of approximately 7 years allows for long-term planning and stability in service delivery. 5. The specific NAICS code 517110 points to services within the Wired Telecommunications Carriers sector. 6. The contract is a Delivery Order, implying it's part of a larger, pre-established contract vehicle.

Value Assessment

Rating: good

Benchmarking the value of this contract requires comparison to similar large-scale telecommunications procurements within the federal government. The $254.6 million over seven years, averaging approximately $36.4 million annually, appears to be within the expected range for comprehensive data network services supporting a major agency like the SSA. The firm-fixed-price structure helps control costs, but ongoing monitoring of service levels and potential for price adjustments or scope creep will be crucial for ensuring value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it is a Delivery Order under the EIS program implies that the initial competition for the EIS contract vehicle itself was robust. While the specific number of bidders for this particular delivery order isn't detailed, the 'full and open' designation generally fosters competitive pricing and encourages innovation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and allows for the selection of the most cost-effective and technically sound solution.

Public Impact

The Social Security Administration (SSA) is the primary beneficiary, receiving critical data network services to support its operations. These services are essential for the SSA's mission of administering social insurance programs, impacting millions of Americans. The contract supports the backbone infrastructure necessary for the SSA's internal communications and data processing. The workforce implications are indirect, primarily supporting the IT and telecommunications sectors involved in service delivery and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition to a new provider is complex or costly.
Reliance on a single vendor for critical network infrastructure could pose a risk if service disruptions occur.
Ensuring continued competitive pricing throughout the 7-year duration requires vigilant contract management.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract is part of the larger EIS program, which aims for efficiency and modernization in federal IT.
Long contract duration allows for stable service delivery and planning.

Sector Analysis

The telecommunications industry, particularly wired telecommunications carriers, is a vital sector supporting government operations. The federal government is a significant consumer of these services, with spending often consolidated under large contract vehicles like EIS to achieve economies of scale. This contract fits within the broader trend of agencies modernizing their network infrastructure to support increasing data demands and cloud adoption. Comparable spending benchmarks would involve analyzing other large agency network service contracts, which often run into hundreds of millions of dollars over several years.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a Delivery Order under the large EIS program, the prime contractor, Lumen Technologies, is responsible for its subcontracting plan. It is possible that small businesses could be involved as subcontractors, contributing to the delivery of services, but this contract does not appear to be directly set aside for them. The impact on the small business ecosystem would depend on Lumen's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would primarily fall under the Social Security Administration's contract management and program offices. As a Delivery Order under the EIS program, there are likely established oversight mechanisms within the General Services Administration (GSA) that manages the overarching EIS contract. Transparency is generally facilitated through federal procurement databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Enterprise Infrastructure Solutions (EIS)
Social Security Administration IT Services
Federal Data Network Services
Wired Telecommunications Contracts
GSA Schedule Contracts

Risk Flags

Potential for service disruption impacting critical government functions.
Risk of cost overruns if scope changes or unforeseen technical issues arise.
Dependence on a single vendor for essential infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $254.7 million to LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC.. ENTERPRISE INFRASTRUCTURE SOLUTIONS (EIS) PROGRAM - SSA DATA NETWORK SERVICES (SSANET)

Who is the contractor on this award?

The obligated recipient is LUMEN TECHNOLOGIES GOVERNMENT SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $254.7 million.

What is the period of performance?

Start: 2019-09-30. End: 2026-09-29.

What is the historical spending pattern for data network services by the Social Security Administration prior to this award?

Analyzing historical spending requires access to detailed SSA procurement data over several years. However, the transition to the EIS program suggests a move towards consolidating and modernizing agency telecommunications. Prior to EIS, agencies often used older contract vehicles like Networx. The SSA's spending on network services would likely have been substantial, reflecting its nationwide operational footprint. The EIS program aims to provide more flexible and cost-effective solutions compared to legacy contracts, so a direct comparison of raw dollar amounts might not be fully indicative of value without considering service scope, technology, and pricing models. The $254.6M award represents a significant, multi-year commitment under a modern procurement framework.

How does Lumen Technologies' performance on previous government contracts compare to industry benchmarks?

Lumen Technologies (and its predecessor, CenturyLink Government Solutions) has a long history of serving government clients. Assessing their performance requires a deep dive into contract data, including past performance evaluations, any contract disputes, and on-time delivery metrics across various agencies. Generally, large telecommunications providers often have a mixed record, with successes in delivering complex infrastructure alongside occasional challenges related to service disruptions or billing issues. The 'good' rating for value suggests that, in the context of this specific award and its competitive environment, their performance is considered satisfactory. However, continuous monitoring throughout the contract's life is essential to ensure sustained performance.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

Specific KPIs and SLAs are typically detailed within the contract's Statement of Work (SOW) and are not publicly disclosed in summary data. However, for a contract of this nature supporting critical SSA operations, common SLAs would likely include metrics for network uptime, latency, jitter, packet loss, and response times for issue resolution and repair. KPIs would focus on the contractor's adherence to these SLAs, potentially including metrics related to service provisioning speed, accuracy of billing, and overall customer satisfaction. The SSA's contract officers would be responsible for monitoring Lumen's performance against these agreed-upon metrics.

What is the potential risk associated with the firm-fixed-price contract type for network services?

The firm-fixed-price (FFP) contract type is generally favored for its cost predictability, as the price is set and not subject to adjustment based on the contractor's cost experience. For network services, the primary risk with FFP lies in potential scope creep or the contractor's incentive to minimize costs in ways that could impact service quality if not carefully managed. If unforeseen technical challenges arise or the SSA requires modifications beyond the original scope, change orders would be necessary, potentially increasing the total cost. Conversely, if Lumen can deliver services efficiently below the fixed price, they realize a higher profit margin. Effective contract administration is key to mitigating risks and ensuring value.

How does the $254.6M award compare to the total federal spending on wired telecommunications carriers (NAICS 517110)?

The total federal spending on NAICS code 517110 (Wired Telecommunications Carriers) can fluctuate annually but typically amounts to several billion dollars across all agencies. This $254.6 million award to Lumen Technologies for the SSA represents a significant portion of spending within this category for a single agency over a seven-year period. It highlights the substantial reliance government agencies place on robust wired telecommunications infrastructure. While this single contract is large, it is one of many awards within the broader federal telecommunications market, which includes numerous providers and contract vehicles.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SSA-RFTOP-18-1001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 931 14TH STE 1000 B, DENVER, CO, 80202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $505,411,705

Exercised Options: $295,330,745

Current Obligation: $254,661,589

Actual Outlays: $235,684,381

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q17NSD3006

IDV Type: IDC

Timeline